Names and identifying details in this case study have been changed to protect our client’s privacy.

Matt bought into a small service franchise. The deal was simple: he paid a weekly fee, and they sent him work. Except the work didn’t come. He was paying every week and losing money.

He tried to get out. He offered to pay out the contract. The franchisor wanted years of weekly fees instead. Matt refused.

Diagram of how this case was resolved: franchise with no work, creditor had no records, nothing to support it, removed in 1 day

At the time he was staying with friends and doing it tough. He changed his mobile number to stop the calls. In the end he came to an agreement with them and paid the whole amount. A default for about $1,100 went on his file regardless.

What it was doing

Matt, from Queensland, only found the default when he was declined for finance. He wanted a home loan and this was in the way.

What we found

We asked the creditor for the documents behind the listing. It told us it had nothing to prove the listing was valid. It said it wouldn’t object to removal, but it no longer had an account to lodge the request through.

Why it came off

A creditor that can’t produce any documents can’t defend its listing. With the creditor confirming it had no records and wouldn’t object, the default was removed.

The result

The default came off 1 day after we started. Matt could confidently apply for a home loan.

What this means for you

Smaller businesses come and go, change systems and lose records. If the creditor can’t show the paperwork, it may not be able to keep the listing. Our credit repair lawyers always ask for the documents first.

This is a past matter. Names and identifying details have been changed to protect our client’s privacy.

Results depend on individual circumstances. Every credit file is different, and a past result doesn’t guarantee the outcome of your matter. This case study is general information, not legal advice.

Don’t spend another month stuck in Credit Prison. Call our credit repair lawyers on 1300 667 218 or book a 15-minute intro call at https://mycralawyers.com.au/15min-credit-repair-intro-call/ . If we think your chances are low, we’ll tell you straight.

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